Why Is MLM So Hated?

[travisfitzwater]

There are many reasons for MLM folly, but here are the couple that I know of from experience:

1. The systems taught no longer work unless you are born to be a salesman (few are born for sales, by the way).
2. Most people aren't diligent enough to really take on the task because they don't know where to begin.
3. All your capital is spent up front with little return for a long period of time if you do actually succeed.
4. Trying to convince family and friends usually ends in hurt relationships as very few are successful in MLM.
5. IT'S HARD WORK!

From my experience, my wife and I are in an MLM currently for the product, but the product is pretty awesome, it's helped her dad tremendously and my wife has back problems and it's helped a lot with the pain.

What MLM folks need to do is take on Direct Sales (my wife and I just started in this arena for the potential of the thing), high commissions on the front end to help with the costs of running a business and better residuals for the short run to help with marketing and capital investment. Some MLMs are great because they have a good product, but you have to give yourself 3-5 years to build up residuals. With Direct Sales, you get your money up front, it's smart.

Thanks!

Travis Fitzwater
Seeking Freedom from the Rat Race!

[ianpalmer]

In my experience with mlm I realized you really have to believe in the product. After I started to see that the health product I was selling was changing lives and the people around me were getting over prostate problems, lower blood pressures, etc... the company decided to sell out to a larger company. This kind of pissed me off because I thought I was on board to something really good.

Luckily I wasn't the only one in the company pissed, the 2 top selling people decided to make virtually the same product +/- a couple ingredients. For putting my trust in them, (WHICH I DO) they are starting me off high up in the beginning stages of a new company that is set to launch in the next few days.

My point is that mlm can be very shady but if you have a product you personally like, its worth being open minded and giving it a try, especially if you can find yourself in a position near the top. I'm excited to see where this takes me.

mlm isn't all bad.

[stephanepage]

The Microsoft Windows operating system, Vista, has the same perception problems. People have heard so much negative about it that they don't want to be bothered. They enjoy ragging on it, as you will see on the video on my blog

However, the marketing team at Vista did something very clever, and documented it in this two minute video below.

Go to SOSmlm.com and click on Prospecting Tools on the left menu.

The problem in network marketing doesn't lie in the business model itself but in the way people operate their business.

When you think about it, any business that reaches a certain size eventually wants to multiply their results by opening other locations. They use the same strategies Network Marketing offers.

But why is it most people have this bad perception?

Take a look at this video along with the article I wrote. I think you will get a glimpse of where the problem lies and what you can do about it.

Hope this helps,

Stephane Page

[AchieveWithAdam]

Wow, a heated debate! As an entrepreneur in the network marketing industry; let me add a few points of my own:

In response to the comments about MLM being a pyramid scheme, or not a real industry; I can see why you feel the way you do - but I respectfully disagree. Many of the world's largest corporations, including Colgate-Palmolive, Gillette, Coca- Cola, AT&T, along with many other companies are either in the midst of (or in the past), launched pilot "network marketing" programs in some of their product categories.

Furthermore, many prominent finance authors, investors and business leaders including Warren Buffett, Donald Trump, David Bach, and Robert Kiyosaki (to name just a few) have endorsed network marketing as a viable way for the average individual to take control of their financial future, and to gain a better understanding of entrepreneurship and business.

To those who say that MLM is about sales - you are absolutely correct. As far as I'm concerned, however, any entrepreneur in any industry is in sales. We are all providing the marketplace with our products and services, whatever they may happen to be; and in the case of those in the network marketing industry, they are promoting the products and services of their respective network marketing company.

The sad truth in all of this is that 97% of those in the network marketing industry aren't willing (or are simply too lazy) to accquire both the skills and mindset that it takes to become a real entrepreneur. Being successful in the network marketing insutry takes perseverence, and most who sign up are simply looking at it as their next "lottery ticket" to making some easy cash.

Furthermore, the debate over network marketers being entrepreneurs is certainly a viable one. If all somone does is pitch their company, products, and business opportunity...then I would have to argue that they are not a real entrepreneur.

However, the way I approach network marketing is simply as another stream of revenue, in addition my other ventures. After all, I believe that people buy into people - not into flashy presentations about the "latest and greatest" business opportunity; and so I provide value to others and promote myself and my business - and then, if appropriate, mention my network marketing business to others.

Now in regards to why the industry is so hated, I believe that can be credited to the lack of skill (and integrity) that many people in the industry have displayed through the past decades, and even today in 2008.

(For example, when you hear the word "MLM", how many of you picture a sleazy salesman in a cheap business suit waiting to push his cleaning products?)

Simply put, that is an amateur way of doing business and absolutely not the way a professional in the network marketing industry does things. This kind of amateur attitude is what has created the gloomy failure rate (97%) of network marketing.

Just my 2 cents. I'd love to hear your thoughts and any questions/debate you may have! Looking forward to some quality discussion!

[rejoice]

it's all about perception... isn't it?
http://www.youtube.com/watch?v=55hAxPFRMNU

[crijoy]

I, and it seem like most people in this forum, do not like the idea of MLM personally however I do think it is a legitimate business model and if done correctly can be profitable for the people on top of the food chain. Why is it that many entrepreneurs look down on MLM, is it because of a certain snobbery toward this type of business and whatever business you do run without sales or customers there is no business. We are all sales people on some level.

[spencerxi]

its legit if you're on top!

[Sully22]

It appears that many peoples perception of network marketing is that its all about being a "salesperson". The truth of the matter is if this is how u choose to run your business your destined to fail. Network marketing is about building relationships with people, presenting your opportunity, but giving them the ability to sell themselves on it. If you have to oversell the opportunity then the prospect is most likely not someone you want in your organization.

Im a firm believer that network marketing can provide you with a lifestyle you may have never thought possible. I know that because it did it for me, and its done it for many people I know both in my organization and in other companies.

The potetial is very real, but you have to believe you can be successful.

[davids]

Hmm. I know of people who have done extremely well from networking, and people who have done very poorly. I can honestly say there's only been two crucial differences.. or maybe three.
1. What kind of energy, character, discipline the person has (influence)
2. What company they chose...
3. How consistent they were in their efforts.

A lot of it depends on what company you choose though.

[RobertRiches]

WOW. What a thread. Serious Kudos to you all.

I know many of you at this forum may be sick of this thread by now but I hope that I am not being too much of an @$$ by adding to it, I just want to say thanks for everyone's input here because this is going to be a BIG help.

If nothing else, what is clear is that figuring out MLM/Network Marketing is Hard. Real hard, to the point that most people cannot be bothered to look at the points and come to their own conclusions. It has been a battle in my mind of late so thankyou because I am in awe of several of the points here, which otherwise I am certain would never encountered.

I am going to read through this whole thread again with a pen, weigh up both sides and then make a decision. At this point in time I am undecided about MLM/Network Marketing. I had signed up with, in my mind a great one, a while ago but did not pursue it. I remembered it recently and after doing some research on the web, have seen that hardly anyone is using modern online marketing strategies to promote this MLM...specifically the product in this case which is fantastic. However I still have some major doubts about MLM and NOW recognise that at the end of the day, it's just a system you buy into as a pose to a system you OWN. That point alone is so freaking obvious that it kills me yet is also so valuable because who knows I could have wasted years of life not realising this and suffering the consequences.

The question I now have to ask myself is is MLM/Network Marketing a worthwhile venture when these principles of the reality of what it is is understood?

The other I have to ask myself is will this be a good thing to start off with, to launch me into acquiring the knowledge and expertise required to own my own business(es) in the future? (After reviewing the other points).

I do not feel that I have the knowledge or life experience to start my own 'bricks and mortar' business currently and as these require the large amount of starting capital I doubt I would be able to anyway...but as said, need to review everything here with full attention first.

Thanks again folks, and to keep on topic: going with what others have said, MLM is hated because there's so much misinformation about it, many are scams and promote the opportunity and 'get rich quick' bs and people/sheep aren't willing to research and form their own conclusion(s).

[nocci01]

95% of the population have tried and failed MLM probably more than once. 95% of the population have also failed in regards to everything else in life including finances. There are more financial failures than successes in any walk of life.

Seek out those who have succeeded in MLM and have them as your mentor. That's how you succeed. Find someone who has what you want and follow them. Listening to the 95% will keep you trapped there.

Misery loves company. You ask friends and family and the failures in MLM that are on this board and they just dog MLM like no one will ever make it in that industry but we all know that's not true. They just don't want you to make it so they try their best to tell you that MLM doesn't work. The truth is they don't work!

There are plenty of heavy hitters in this industry that make over $50,000 a month. The naysayers are just mad because they have to be stuck in the rat race indefinitely. Of course there are business owners dogging MLM too. They either failed or are jealous of the time freedom that some of the heavy hitters have.

If you want to succeed in MLM it's really easy. Find a good mentor, commit to learning about the industry, NEVER QUIT, don't listen to the failures, and just start building the business until you've got a few hundred/thousands from outside of your own country. Then you'll never have to work another day in your life.

By the way...did you know that Trump, Kiyosaki, Tom Hopkins, etc...they're all pro-MLM. If you want to succeed in MLM...would you listen to what they have to say about it or these failures that don't want you to succeed?

[stevensaliba]

Here is the deal guys. To be successful in MLM you need a strong company with leadership. To succeed in an MLM you need to speak to people. If you spoke to 30 different people about your specific opportunity don't you think you can at least sign up 1 business partner? It takes work, but a strong MLM company can really change your life.

[rejoice]

go hard or go home i say !!

[share_boy]

Hai All. Not All people hated MLM. I found several person do MLM job in my country.

[Justice44]

Pyramid Scheme Vs. Network Marketing

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Many people think all network marketing opportunities are pyramid schemes. This post explains the difference:

Network Marketing is somewhat like franchising. In fact, it is sometimes described as "The People's Franchise". Both give the right to do business with the use of the company name and the use of an established or duplicable system of doing business EXCEPT network marketing does require distributor to pay for expensive and an upfront franchise fees.

In seeking a viable and sustainable network marketing distributor opportunity, three basic components must exist. These are:
1. Quality of the Product Value
2. Quality of the Company
3. Quality of the Compensation Plan

With the presence of this 3 factors, a network marketing distributor must offer three initiatives to match or maximize the business opportunity offered by the company. These are:
1. Quality of Prospect (your connection)
2. Quality of Effort and and time (your passion)
3. Quality of leadership (your mission)

How Do you make money in Network Marketing?
Distributors are paid not only for their personal sales but also from the sales of their downlines upon reaching a qualifying rank and/or volume. This enable ordinary people to start on equal footing with everyone else at the begining of their network marketing distributorship business.

Pyramiding/scams What is it?
Network marketing is not a pyramiding scam. The only similarity between legitimate network marketing and pyramiding scam is that both offer an incentive for one to introduce another to the business. They are however, differ in 3 aspects.
1. Pyramiding - fraudalent and not a sustainable operation.
2. Pyramiding is not legal
3. Pyramiding companies pay commissions on people recruited while network marketing schemes pay stricly on retail sales and none on people recruited.

Hopefully, this information is helpful to many who want to know more about network marketing